Members of the European Parliament vote in favor of tax policies on crypto and blockchain

The resolution recommended that authorities in all 27 member states of parliament consider "simplified tax treatment" for crypto users involved in transactions occasional or small. Members of the European Union Parliament have voted in favor of a non-binding resolution to use blockchain to fight tax evasion and coordinate tax policy on cryptocurrencies.

In an October 4 opinion, the European Parliament said 566 out of 705 members voted in favor of the resolution originally drafted by MEP Lídia Pereira. According to the legislative body, the resolution recommended that authorities in its 27 member states consider “simplified tax treatment” for crypto users involved in occasional or small-scale transactions and request national tax administrations to use the blockchain technology "to facilitate efficient tax collection".

For cryptocurrencies, the resolution asked the European Commission to assess whether the conversion of crypto to fiat would constitute a taxable event, depending on where the transaction took place, saying it was a "more appropriate choice". Additionally, the policy would require an administrative amendment to better exchange information regarding crypto taxes.

The resolution adds that member states of parliament could incorporate blockchain solutions into tax programs:

"Blockchain's unique capabilities could offer a new way to automate tax collection, limit corruption, and better identify ownership of tangible and intangible assets, enabling better taxation of mobile taxpayers. [. ..] Work needs to be undertaken to identify best practices for using technology to improve the analytical capacity of tax administrations.”

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